No... Ethanol is just grain alcohol... same stuff you drink.
en.wikipedia.org
actually Most of the bigger equipment is Electric.... power comes from either the Grid ( if available) or onsite generation, which is usually Diesel...
Edit* The Bigger Trucks are Diesel-Electric. all the Diesel engine does is generate electricity, the Driveline is Electric.
some larger Mines have a few Locomotives on site just for use as a power plant.
and as for the underground Carbon Storage questions...
I read an article recently, some university Figured out that intact Coal Seams, are Perfect to Hold Hydrogen Gas for Storage. (and the lower grade coal works even better for this use) they hold it better than the Methane (Natural gas) that Forms along side the coal... so once we figure a Truly "Green*" way to make Hydrogen in bulk, there are plenty of places to store it safely underground...
* I mean Green in both the Environmentally Friendly way, and in the economic sense.